Platinum Australia inks deal to earn 70% stake in SA project
miningweekly.com
By: Creamer Media Reporter
22nd May 2009
Updated 1 hour 31 minutes ago
JOHANNESBURG (miningweekly.com) – ASX- and Aim-listed Platinum Australia (PLA) has signed a conditional agreement with Atla Mining Resources to acquire up to 70% of the Rooderand platinum project, in the Bushveld Igneous Complex, in South Africa.
Atla, the mandated representative of the Bakgatla-Ba-Kgafela tribe, and PLA will jointly evaluate and develop the Rooderand project, said MD John Lewins.
Under the terms of the agreement, PLA would earn an initial 30% interest in the project for R13,5-million, or A$2-million, on completion of the due diligence by October 20.
PLA would earn a further 35% stake for sole funding the project until a feasibility study on the project has been completed. The company could then earn a further 5% interest for arranging the financing for the development of the project and loaning Atla 9% of the funds required for such development.
The parties have also agreed that Platinum Australia South Africa, a subsidiary of PLA, would manage the project.
Lewins added that the resource of the Rooderand project was based on the upper ground two reef, which is present from surface to a depth of almost 500 m below surface.
PLA also owns the Smokey Hills mine in South Africa. |
